Segment Reporting

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Segment Reporting:

The products of Altria Group, Inc.'s consumer products subsidiaries include smokeable products comprised of cigarettes manufactured and sold by PM USA, and machine-made large cigars and pipe tobacco manufactured and sold by Middleton; smokeless products manufactured and sold by or on behalf of USSTC and PM USA; and wine produced and/or distributed by Ste. Michelle. Another subsidiary of Altria Group, Inc., PMCC, maintains a portfolio of leveraged and direct finance leases. The products and services of these subsidiaries constitute Altria Group, Inc.'s reportable segments of smokeable products, smokeless products, wine and financial services.

As discussed in Note 1. Background and Basis of Presentation,beginning with the first quarter of 2012, Altria Group, Inc. has revised its reportable segments. Prior-period segment data have been recast to conform with the current-period segment presentation.

Altria Group, Inc.'s chief operating decision maker reviews operating companies income to evaluate the performance of and allocate resources to the segments. Operating companies income for the segments excludes general corporate expenses and amortization of intangibles. Interest and other debt expense, net (consumer products), and provision for income taxes are centrally managed at the corporate level and, accordingly, such items are not presented by segment since they are excluded from the measure of segment profitability reviewed by Altria Group, Inc.'s chief operating decision maker.

Segment data were as follows:

	For the Six Months Ended June 30,						For the Three Months Ended June 30,
	2012			2011			2012			2011
	(in millions)
Net revenues:
Smokeable products	$	11,003		$	11,001		$	5,903		$	5,858
Smokeless products	806			783			426			404
Wine	241			217			128			116
Financial services	84			(438		)	30			(458		)
Net revenues	$	12,134		$	11,563		$	6,487		$	5,920
Earnings before income taxes:
Operating companies income (loss):
Smokeable products	$	3,079		$	2,952		$	1,640		$	1,583
Smokeless products	432			415			240			222
Wine	37			31			22			19
Financial services	87			(442		)	35			(463		)
Amortization of intangibles	(10		)	(11		)	(5		)	(5		)
General corporate expenses	(106		)	(111		)	(55		)	(61		)
Operating income	3,519			2,834			1,877			1,295
Interest and other debt expense, net	(586		)	(572		)	(293		)	(294		)
Earnings from equity investment in SABMiller	743			344			223			155
Earnings before income taxes	$	3,676		$	2,606		$	1,807		$	1,156

Items affecting the comparability of net revenues and/or operating companies income (loss) for the segments were as follows:

PMCC Leveraged Lease Benefit / Charge - During the second quarter of 2012, Altria Group, Inc. recorded a one-time net earnings benefit of $68 million as a result of the execution of a closing agreement (the “Closing Agreement”) with the IRS that conclusively resolved the federal income tax treatment for all prior and future tax years of certain leveraged lease transactions entered into by PMCC. Included in this net benefit was a pre-tax charge of $7 million that was recorded as a decrease to PMCC's net revenues and operating companies income. During the second quarter of 2011, Altria Group, Inc. recorded a charge of $627 million related to the federal income tax treatment of these transactions (the "PMCC Leveraged Lease Charge"). Included in this charge was a pre-tax charge of $490 million that was recorded as a decrease to PMCC's net revenues and operating companies income. (See Note 8. Finance Assets, net, Note 10. Income Taxes and Note 11. Contingencies for further discussion of this matter).

PMCC Allowance for Losses - During the second quarter of 2012, PMCC decreased its allowance for losses by $10 million, based on management's assessment of the credit quality and size of PMCC's leasing portfolio. (See Note 8. Finance Assets, net).

Tobacco and Health Judgments -For the six and three months ended June 30, 2012 and 2011, Altria Group, Inc. recorded net pre-tax charges of $1 million and $36 million (excluding accrued interest), respectively, related to certain tobacco and health judgments. These charges are reflected in the smokeable products segment. See Note 11. Contingencies.

Asset Impairment, Exit, Implementation and Integration Costs - See Note 2. Asset Impairment, Exit, Implementation and Integration Costs for a breakdown of these costs by segment.